The deal releases approximately £1 billion of capital to reinvest into London's transport network, including delivering a fleet of new Piccadilly line trains.
The trains will be leased for an initial term of 20 years, with an option to purchase the fleet at the end of the initial lease term. The deal ensures that TfL retains control over operations of the new Class 345 trains across the Elizabeth line, whilst releasing significant capital to reinvest elsewhere on the network.
The completion of the sale and leaseback deal will have no impact on the operation or maintenance of the Elizabeth line fleet, which will remain with TfL and MTR Crossrail, which currently operates TfL Rail services.
Since June 2017, the new Class 345 trains, which have been built by Bombardier Transportation in Derby, have been gradually introduced on TfL Rail services between Liverpool Street and Shenfield, as well as between Paddington and Hayes & Harlington since May 2018. Train testing is now being carried out through the new tunnels in central London using the new Class 345 trains. Test trains have also recently been running out to the Reading station as part of TfL's wider work, along with the DfT, to operate Reading to Paddington services ahead of the completion of the Elizabeth line.
Ashurst worked closely throughout with TfL's in-house legal team.
The Ashurst team was led by partners Terry van Poortvliet and Jason Radford, assisted by senior associate Samuel Outtridge.
